The Plastic Market Rose Slightly This Week. How Will The Plastic Market Change Next Week?

Aug 23, 2022

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This week, the price of plastics increased slightly. Due to the continuous rise of futures and the sharp decline of petrochemical inventory, as of July 29, the storage of two plastic barrels of oil was 600000 tons, a decrease of 10000 tons compared with yesterday, a decrease of 55000 tons compared with the same period of last year, a year-on-year decrease of 8.4%. The petrochemical inventory decreased significantly, which was favorable to the market offer of plastics. At the same time, the market expected that the demand in August was expected to be good. Due to the arrival of the peak season from September to October, The expectation of better demand is also favorable to the spot offer. During the week, the price of LLDPE increased by 100 yuan / ton, the price of LDPE decreased by 100-200 yuan / ton, and the price of PP drawing increased by 50-150 yuan / ton.

Then, after a small rise, how will the plastic market develop next week? On the cost side, the US GDP shrank for two consecutive quarters, causing the market to worry about oil demand. On the 28th, the international oil price fluctuated. In terms of oil supply and demand, the current supply is far below the average level, while the demand remains at a better than expected level. Oil distribution rose by US $0.52/barrel to US $107.14/barrel.

At present, there are still worries about economic recession. In terms of oil supply and demand, the current supply is far below the average level, and the demand is better than expected. However, the economic recession and the normalization of Libyan oil supply are still bad for the oil price. Therefore, on the whole, the recent international oil price trend has shaken and has little impact on the plastic market. From the perspective of supply and demand, in terms of supply, most units are still under maintenance, but some units have start-up plans next week, and the maintenance loss may be reduced. In terms of demand, the demand of agricultural film enterprises has significantly increased, and the performance of plastic weaving and BOPP industries is general. Next week will enter August, and the market is expected to be better in gold, silver and ten, and the demand may be improved in the later period.

In terms of market offers, PE prices have been rising in succession, with the linear mainstream price of 8050-8500 yuan / ton, the linear price in North China has been increased by 50 yuan / ton, and the regional quotation range is 8050-8100 yuan / ton. The linear price in East China was reported at 8050-8100 yuan / ton, an increase of 50 yuan / ton compared with yesterday. The linear price in South China is 8200-8500 yuan / ton, and the low-cost goods source is 50 yuan / ton higher than yesterday. The price of LDPE is partially higher, the mainstream price is 9850-12400 yuan / ton, the high-voltage price in North China is 10100-10200 yuan / ton, and the low-level source price is 50 yuan / ton higher than yesterday. The high-voltage price in East China is 9850-10100 yuan / ton, and the low-level supply is 50 yuan / ton lower than yesterday. The high-voltage price in South China is 10200-12400 yuan / ton, and the low-level supply price is 50 yuan / ton higher than yesterday.

At the same time, the PP wire drawing price has been gradually increased. The mainstream price of wire drawing is 8150-8350 yuan / ton, and the wire drawing price in North China is 8150-8250 yuan / ton, which is 50-100 yuan / ton higher than yesterday. The wire drawing price in East China is reported at 8150-8200 yuan / ton, which is 50 yuan / ton higher than yesterday. The wire drawing price in South China was reported at 8250-8350 yuan / ton, up 50 yuan / ton compared with yesterday. In general, the futures continue to rise, and the demand is improving. The PP / PE market has successively reported a rise of 50-100 yuan / ton. In the future, the next week will enter August, and the demand may further improve. Therefore, the PP / PE market may have an upward prospect.